The rule in section 10(i)
Section 10 of Chapter 183A lists the powers and duties of the organization of unit owners, usually a condominium trust with a board of trustees. Subsection (i) carries the reserve rule:
"All condominiums shall be required to maintain an adequate replacement reserve fund, collected as part of the common expenses and deposited in an account or accounts separate and segregated from operating funds."
Three duties sit in that sentence. There must be a replacement reserve. It must be funded through the common charges that owners already pay. And the money must be held apart from the operating account.
What the statute leaves out
Section 10 does not define "adequate", give a percentage, require a reserve study, set an interval for one, or say who may prepare it. That is why Massachusetts is often described as a reserves-only state: the Community Associations Institute's June 2026 summary of state laws puts it in that group.
Your own master deed, declaration of trust and bylaws may go further than the statute, for example by requiring a study or a minimum contribution. Read them first, and ask the association's attorney if the wording is unclear.
The 67 percent vote
Subsection (m) lets owners change some of the section 10 requirements once the developer has handed over control. Among them is "the reserve fund requirement of subsection (i)". A change needs a vote of owners holding sixty-seven percent or more of the beneficial interest, and the vote is taken each year rather than once.
The same subsection covers how often the manager must report and the signature rules for reserve accounts. A board thinking about this route should take legal advice: lenders and buyers will still look at the reserve figures, whatever the vote says. We cover the trade-offs in our blog.
How reserves must be held
- Separate accounts. Under subsection (f)(2), a manager or managing agent must keep a separate and distinct account for the replacement reserve fund, never mixed with the manager's own assets.
- Regular reports. Subsection (f)(1) asks for a written report to the board at least monthly, and in no case less often than quarterly, covering receipts, spending, balances and reconciliations of the reserve fund.
- Two people on reserve checks. Subsection (g) requires checks drawn on a reserve account to be signed by a member of the board, or someone the board designates, in addition to the managing agent, unless a written agreement says otherwise.
- Records. Subsection (c) lists records the organization must keep, including records about the replacement reserve fund and the related bank statements.
Special assessments and priority
Section 6 gives the association a lien for unpaid common charges, and subsection (c) gives part of it priority over a first mortgage: common expenses under the budget for the six months before the association acts to enforce the lien, plus costs and reasonable attorney's fees. The priority amount does not include special assessments, late charges, fines or interest.
In practice that makes a special assessment a weaker way to pay for a roof than a reserve built up over time. It is one more reason boards plan contributions instead of billing owners after a failure.
Where a study fits
A reserve study lists the common elements the association must repair or replace, estimates when and at what cost, and sets out a contribution that keeps the fund ahead of the work. In a state that requires "adequate" without defining it, the study is the evidence. It is also what lenders reach for, as the lender page explains.
This page summarizes the statute as published by the Massachusetts Legislature on November 6, 2026. It is general information, not legal advice. Check with the association's attorney before acting on it.